1. Boston University Finance Club
Investment Banking
Boston University Finance Club

2. Introductions Ricardo Alex Analyst, Technology M&A at Jefferies
Graduated SMG in 2011 with a dual concentration in Entrepreneurship & Finance
Previous Internships
DFJ Esprit
Jefferies
Alex
Analyst at Bowen Advisors
Graduated SMG in 2011 with a dual concentration in Finance & Marketing
Merrill Lynch
Laven Partners

3. What is investment banking?
A financial intermediary between investors and companies
Sports agents represent their clients in all major financial matters
Investment bankers represent their clients in all major financial/strategic matters
Investment Banks Generally have 3 Major Divisions
Sales and trading
Broker for institutional clients
Proprietary trading
Research
Corporate finance & M&A
Corporate Finance
IPO
Private placement
Restructuring
M&A
Sellside
Buyside
2010 Total Global Banking Revenue
($USD Billion)
The Economist.
Financial Times.

4. Type of Investment Banks
Bulge bracket
Full service, thousands of employees, billions in annual revenue
Goldman Sachs, Morgan Stanley, BofA/Merrill Lynch, JP Morgan & Co., Credit Suisse, Citigroup, Deutsche Bank, UBS
Full service mid-market
Jefferies, CIBC, Cowen, Morgan Keegan, Needham, Raymond James, RBC,
Bulge boutique
High end, large deals, M&A only
Evercore, Greenhill, Blackstone, Lazard
Boutique
Bowen Advisors, America’s Growth Capital, Capstone, GCA Savvian, McNamee Lawrence, Pagemill, Mooreland, Revolution Partners (acquired by Morgan Keegan), Updata, many others

5. Introductions Ricardo Alex Analyst, Technology M&A at Jefferies
Graduated SMG in 2011 with a dual concentration in Entrepreneurship & Finance
Previous Internships
DFJ Esprit
Jefferies
Alex
Analyst at Bowen Advisors
Graduated SMG in 2011 with a dual concentration in Finance & Marketing
Merrill Lynch
Laven Partners

6. What do Investment Bankers Do?
Understand the industry, market sentiment and economy
Determine the most stable cap structure
Consider the best growth alternatives
Pitch the positioning of the business, the timing for the transaction and your bank’s capabilities
Where does business come from?
Bake-offs
Relationships
Coverage Banker
Idea generation by the bank

7. The Role of an Analyst
Market Research, Buyer/Seller Profiles, Comparable/Premium Analyses, Due Diligence / Data Rooms, Drafting Materials
Finalize Marketing Materials, (CIMs) Financial Modeling
Management Presentations, Pitches, Negotiation
Analyst
Information
Associate
Senior Level

8. Pros and Cons Keeping an appropriate life / work balance is key
Personal growth
Technical
Analytical
Presentation
People skills
Working on Deals
Advise Senior Management
Compensation
Career development
Cons
hour weeks
~19 hours a day
7 days a week
Iterative Process
“Culture”

9. How to get in the field? Networking Internships InterviewVC
Hedge Fund PE
Interview
Research: Corporate hierarchy, division, past performance, current news and events
Show that you are eager to learn and work hard
Mention that you are always on time and are able to meet deadlines
Work on your people skills

10. Exit Opportunities & Alternatives
Venture Capital
Private Equity
Hedge Funds
Market leading industry firms
Alternatives
Asset Management
Corporate Development

11. BU Finance Club Boston University Advantage
Strong general management program
“The Harvard Business School takes an approach to learning that says that all business problems are interconnected”1
Apply for summer internships in finance related jobs now!
Semester abroad  internship
LinkedIn cold call
Jeremy Shinewald, Founder & President of mbaMission.

12. Questions?

13. Back up slides

14. Links Mergers and Inquisitions www.mergersandinquisitions.com
Investment Banking overview
Financial Times – League Tables

15. How is IB affected by the market & economy?
ECM
Market sentiment
Trends in the market
Appetite
What sectors are in
Monetary policy

16. Equity Research Sales and Trading Valuing company
Speaking to management, understanding the business strategy
Evaluating situations
Sales and Trading

17. Advisory Capital structure Growth
Acquisition
Organic
Divest a business
Understanding the market sentiment and economy
Strong market
Higher M&A volume, easier to raise capital
Weak market
Lower transaction volume

18. Departments of a Full-Service Investment Bank
Middle & Back Office
Front Office
Client
Equity
Research
Sales and Trading
Investment Banking
Manage the relationship with firms wanting to raise money
Equity capital markets
Manage the relationship with investors (public offerings)
Bridge between IB and Equities

19. Investment Banking Landscape
YTD Deals by Region ($USD Million) (1)
YTD Top 10 Banks (1)
Financial Times.